Staten Island Real Estate Faces Slower Sales and Cautious Buyers Amid Limited Inventory

Written by:

Steve Marcinuk

Date:

29 Dec 2025

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Staten Island’s real estate market is adjusting to new realities as rising interest rates and limited housing supply reshape buyer and seller behavior. With median home prices now around $700,000 and annual appreciation between 4% and 8%, Staten Island remains attractive to New Yorkers seeking more space and relative affordability. Still, the pace and nature of transactions have shifted.

A More Cautious Market

The frenzied activity that defined the pandemic-era market has faded, replaced by a slower, more selective approach from buyers. Kevin Borgersen, broker associate and company trainer at Red Door Realty Group, has observed these changes over his 13 years in the industry.

“Buyers are becoming more selective. They are willing to wait for better deals even though the deals aren’t out there,” Borgersen says. “Buyers are not as desperate as they were during COVID. They’re a lot more patient now, especially in my market.”

This increased patience has led to fewer bidding wars. While some homes still attract multiple offers if priced correctly, the days of rampant overbidding are essentially over. “People are not really bidding against each other,” Borgersen notes. “Sometimes, if sellers price the house properly, you’ll see it—but not that often, not like you used to.”

Inventory Stays Tight

Staten Island’s most significant challenge remains its persistent shortage of homes for sale. Many homeowners who locked in low interest rates during the pandemic are unwilling to trade up and face higher borrowing costs, resulting in fewer new listings and slower market turnover.

“When interest rates were down, and house prices skyrocketed, anybody who was thinking about selling decided at that point to sell their house,” Borgersen explains. “Now, people who are looking to sell are the ones who have to do it, and no one’s doing it to go buy something else because the interest rate on their current house is low. For them to sell that and go buy something else, the interest rate is going to be much higher.”

The result is a lock-in effect, where discretionary sellers sit on the sidelines, and only those with pressing needs list their homes. Average days on market have lengthened to 45 to 60 days, and market conditions increasingly force sellers to lower their asking prices after starting too high. “A lot of price adjustments, in my opinion, is the fact that you have homeowners who still think the house is worth 10% more than it was last year, when that’s not true,” Borgersen says.

Neighborhood Trends and Buyer Migration

Within Staten Island, some neighborhoods are faring better than others. Mid-Island areas, such as Westerleigh, have seen stronger demand and steadier price growth than the traditionally popular South Shore, where appreciation has slowed.

“The area that was always the hottest for a long period of time was Staten Island South Shore,” Borgersen notes. “But now, you see those prices are climbing a lot less than Mid-Island.”

Staten Island continues to draw buyers from Brooklyn and Queens, attracted by lower prices and larger properties. “The majority of the homes that I sold were to people coming in from other areas—Brooklyn, Queens,” Borgersen reports. “It’s probably primarily for affordability, and also, you do get a little bit more property in Staten Island than you do in Brooklyn.”

Distinct Buyer Segments

The market’s current structure has led to clearer divisions among buyer groups. First-time buyers are typically searching for entry-level properties, particularly one-bedroom condos priced between $320,000 and $400,000. Investors, meanwhile, are focusing on multi-family homes, seeking the additional rental income those properties provide.

“Most first-time homebuyers, especially at the prices currently in New York, if you’re going to buy a condo, that’s really what you can afford,” Borgersen explains. “The people who are going into the multi-family homes are the people who are established and want that extra income.”

This separation of buyer types has reduced direct competition for the most affordable units and concentrated investor activity in properties with better income potential.

Short-Term Outlook and Market Risks

Looking ahead, Borgersen expects Staten Island’s market to remain stable, with modest price increases likely over the next six to twelve months. “I still think it’s going to be strong. I still think the prices will continue to increase month-over-month slightly,” he predicts, estimating another 3% to 4% rise in the coming year.

However, he cautions that the market’s resilience is not guaranteed. “The risk is you never know what’s going to happen—a market crash can happen tomorrow,” Borgersen warns. “Everybody who’s waiting on the sidelines for something better could end up selling the house for a lot less than if they put it on now.”

This uncertainty encourages both buyers and sellers to act based on current conditions rather than waiting for dramatic market shifts that may not materialize.

Persistent Misconceptions

Despite increased demand from other boroughs, Staten Island still faces image challenges among some New Yorkers. “The biggest misconception that people have about Staten Island is from the other boroughs—a lot of people look at Staten Island as not part of New York City,” Borgersen says. “When that couldn’t be further from the truth. We have a lot more parks and a lot fewer subways, but otherwise it’s the same thing as New York City. It’s just a little bit more elbow room.”

This perception issue persists even as more buyers discover the borough’s advantages, including its relative affordability, larger lots, and suburban feel within city limits.

Infrastructure Pressures Mount

As population and housing density increase, Staten Island’s infrastructure struggles to keep pace. Traffic congestion has worsened, while public transportation options remain limited compared to other boroughs.

“Staten Island has been building and building and building for decades,” Borgersen observes. “Traffic has increased exponentially, but our infrastructure, like our trains and buses, has not.”

This mismatch between housing development and infrastructure investment is now a central concern for residents and policymakers. Without improvements to transit and roads, further growth could strain the quality of life and limit the borough’s appeal to newcomers.

Strategies for Today’s Market

Navigating Staten Island’s market now requires realistic expectations and careful timing. Borgersen advises both buyers and sellers to focus on present opportunities rather than waiting for ideal conditions that may never arrive. “The best time to buy or sell is right now, whatever that right now happens to be,” he says.

For sellers, this means pricing homes in line with current market realities, rather than holding out for last year’s peak values. For buyers, patience and flexibility are key, as limited inventory and cautious sellers mean fewer bargains and longer searches.

A Borough in Balance

Staten Island’s real estate market stands at a crossroads, shaped by high demand, limited supply, and the ongoing effects of higher interest rates. The borough’s unique position—offering more space and affordability than much of New York City—continues to attract buyers, especially from Brooklyn and Queens. But the pace of sales has slowed, and both buyers and sellers are weighing decisions more carefully than during the pandemic boom.

Long-term growth will depend on Staten Island’s ability to address infrastructure bottlenecks and maintain its appeal as a more spacious, suburban alternative within the city. For now, steady price appreciation and persistent inventory shortages suggest a stable, if slower, market—one defined by cautious optimism and a focus on practical decision-making.